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TRANSPORT OPERATIONS (PASSENGER TRANSPORT) ACT 1994 - SECT 56
Entitlement of existing operators
(1) This section applies if— (a) the chief executive proposes to enter into
a service contract (a
"new contract" ) under section 38B for an area or route declared under
section 42 ; and
(b) there is an operator (an
"existing operator" ) who already provides a general route service of the same
kind for part or all of the area or route as the service that is to be
provided under the new contract; and
(c) there is no holder of an existing
service contract who must be invited to offer for the contract under
section 62 (1A) .
(2) The existing operator is entitled to the first
opportunity, exercised in the way set out in section 57 , to offer for the
new contract.
(3) This section does not apply to— (a) a service contract
holder operating under a service contract for the area or route— (i) that
states that section 62 does not apply to it; or
(ii) if the chief executive
has— (A) issued a notice under section 46 (9) or 62A to the holder; or
(B)
issued a notice to the holder suspending or cancelling the holder’s service
contract under section 47 (1) ; or
(C) received notice from the holder that
the holder intends to surrender the holder’s service contract; or
(b) a
person providing a service, of the kind that is required to be provided under
the service contract, under a written agreement with the holder.
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